annual report and accounts - petrodata management services
TRANSCRIPT
Vision, Mission & Quality Statements
Corporate Information
Notice of Annual General Meeting
Chairman's Statement
Managing Director's Report
Directors' Report
Independent Auditor's Report
Statement of Financial Position
Statement of Profit or Loss and Other Comprehensive Income
Statement of Changes in Equity
Statement of Cash Flows
Accounting Policies
Notes to the Financial Statements
Value Added Statement
Five Year Financial Summary
Unclaimed Dividend
Proxy Form
E-dividend Form
Notes
2
3-4
5
6-7
8-9
10-16
17-19
20
21
22
23
24-37
38-44
45
46-48
49
50-51
52-53
54TAB
LE O
F C
ON
TEN
TS
PETRODATA MANAGEMENT SERVICES LIMITEDFINANCIAL STATEMENTS FOR THE YEAR ENDED 31, 2017
1
Vision, Mission And Quality Statements
To be the Petroleum Data Center for Nigeria and Africa.
To store and manage Geophysical, Petrophysical and Geological data for our Clients in such ways as to prolong the life of all data in our custody; assure their integrity and confidentiality using appropriate technology.
To protect Shareholder value and be the Company of choice for our staff and the Public.
To give due regard to Health, Safety and Security of our Staff, and Clients who visit our offices; and to be pro-active in the Safeguard of our immediate Environment.
Petrodata aims to deliver products and services to its clients at world-class standards.
In implementing this policy we will not only comply with standards prescribed by local and
international legislation, but also promote measures for continuous improvement on quality of our
products and services. Continuous feedback from our clients and other stakeholders as well as
competence development of our staff will be key ingredients of our quality improvement process.
We will conduct our business with the understanding that:
“the race for quality has no finish line
POLICY ON QUALITY MANAGEMENT
MISSION
VISION
2
PETRODATA MANAGEMENT SERVICES LIMITEDFINANCIAL STATEMENTS FOR THE YEAR ENDED 31, 2017
Corporate Information
3
Directors Engr.Babajide A.Soyode (Non-Executive Director)
Chief (Mrs) Marlies Allan (Non-Executive Director)
Mr. Wole Shebioba (Managing Director)
Dr. Olufemi. A Lalude (Non-Executive Director)
Chief Richard D. Adelu (Non-Executive Director)
Mr Adebayo Akinpelu (Non-Executive Director)
Mr.Taukeme Koroye (Non-Executive Director)
Nature of Business and Principal Activities
Secretaries
A data storage and management firm for clients in the petroleum, financial and other sectors of the economy,
Fatima Abdulazeez and Company(Legal Practitioners)
Guaranty Trust Bank PlcFirst Bank of Nigeria PlcFidelity Bank PlcAccess Bank Plc
Registered Office
Bankers
Motorways Centre1 Motorways AvenueAlausa, IkejaLagos
Auditors Abax-OOSA Professionals(Chartered Accountants)
PETRODATA MANAGEMENT SERVICES LIMITEDFINANCIAL STATEMENTS FOR THE YEAR ENDED 31, 2017
Mr. Taukeme Edwin Koroye was Executive D i r e c t o r ( E D ) O p e r a t i o n s a n d Technology Division, Transaction Banking Services, Total Quality Management , Cash M a n a g e m e n t a n d Compliance at Access
bank. He was at one time Chief Compliance officer of the bank. He led insurance subsidiaries in Nigeria and Ghana, and also banking subsidiaries in the UK and eight (8) African countries in West, Central, East and Southern Africa
Chief (Mrs.) Marlies
Allan is currently the
managing partner of
Allan & Ogunkeye
( L e g a l
Practitioners) and
Notary Public of the
Supreme Court of
Nigeria. She is the
president of the
A.I.P.P.I in Nigeria,
a one-time president of the International Federation of
Women Lawyers (FIDA) (Nigeria) and International
Director of F.I.D.A (Int.). She is also the Chairman Board of
Trustees of Atlantic Hall School, Maryland, Lagos and a
member of several International Law Associations.
Mr. Adebayo
Akinpelu is an
accomplished
P e t r o l e u m
Geologist and
recently retired
as an Executive
Director from
Chevron after a
career that spanned over 3 decades. He brings to the
board, significant E & P exposure in a Multinational oil
setting and an enviable career filled with significant
achievements. His professional career culminated in
the award of the "Distinguished Service Award" of the
American Association of Petroleum Geologists
(AAPG) in 2004 with the added distinction of being the
first African to receive this award.
C h i e f R . D A d e l u
w o r k e d f o r S h e l l
P e t r o l e u m
D e v e l o p m e n t
Company in various
c a p a c i t i e s a s
Production Geologist
a n d P e t r o l e u m
Engineer . He la ter
worked with the NNPC
and the DPR where he
was Deputy Director, Resources Management for seven years.
He is presently the Chief Executive Officer of Radoil Services, a
Petroleum Services Company, and currently serves on the
Boards of a number of companies.
Dr. Lalude retired
a s G e n e r a l
Manager, Shell
N i g e r i a
Exp lo ra t ion &
P r o d u c t i o n
Company L td .
( S N E P C O ) , a
SHELL Company
engaged in deep
offshore and far inland oil and gas exploration. He was
also General Manager of Shell's Western Division in
Warri, and Engineering Manager. He also worked with
Shell International in Holland and the U.S.A. He was a
Senior Design (Mechanical) Engineer for Nuclear Power
Plants at Bechtel Corporation in the United States and
presently an oil industry consultant.
Engr. Soyode is currently President of Atlas Poligenics Limited, an oil & gas engineering
consultancy firm. Engr. Soyode retired from the Nigerian National Petroleum Corporation
(NNPC) as the Group General Manager in charge of Corporate Planning and Business
Development. While in NNPC, he occupied various positions including General Manager,
Refining and Marketing in the Petroleum Inspectorate.
Corporate Information
4
PETRODATA MANAGEMENT SERVICES LIMITEDFINANCIAL STATEMENTS FOR THE YEAR ENDED 31, 2017
Mr. Wole Shebioba
has over 28 years
cognate experience.
He worked as a field
Geophysicist with the
Shell company PH
from 1987 to 1993,
before joining CGG as
chief seismologist, he
later went back to Shell as a Seismic Acquisition and
processing Quality Assurance and control consultant for
onshore and deepwater exploration in the Niger Delta. Wole
at various times provided QA/QC services as an independent
consultant to different oil Exploration outfits in the Gulf of
Mexico and west African, He later joined Petrodata in 1998
as the Data centre manager. He holds a 1987 B.Tech in
applied Geophysics and MSc in exploration Geophysics in
1994. He is an Alumnus of Lagos Business School and a
member of The Nigerian Association of Petroleum
Explorationists. (NAPE).
Fatima Ibijoke Daudu (Mrs.)FRC/2015/NBA/00000011918For: FATIMA ABDULAZEEZ & CO.(Goldhouse Solicitors)144, Ogunlana Drive, Surulere, Lagos.Company Secretaries/Registrars,May 2018.
Notice of AnnualGeneral Meeting
5
NOTICE OF PETRODATA MANAGEMENT SERVICES LIMITED 2017 ANNUAL GENERAL MEETING
ndNOTICE IS HEREBY GIVEN PETRODATA MANAGEMENT that the 22 Annual General Meeting of Members of stSERVICES LIMITED will hold at The Westwood Hotel, 22 Awolowo Road, Ikoyi, Lagos on Thursday 31 May, 2018 at
12noon to transact the following business:
ORDINARY BUSINESS1. To receive the Audited Financial Statements for the year ended 31 December, 2017 and the st
report of the Directors and Auditors thereon;
2. To declare dividend;
3. To authorize the Directors to fix the remuneration of the Auditors.
PROXYA member entitled to attend and vote at the Annual General Meeting is entitled to appoint a proxy to attend and vote in his/her/its stead. A Proxy need not be a member of the Company. For a valid appointment, a duly completed and stamped proxy form must be deposited at the office of the Company Secretaries/Registrars, FATIMA ABDULAZEEZ &CO. (GOLDHOUSE SOLICITORS) 144, OGUNLANA DRIVE, SURULERE, LAGOS or by email to [email protected] not later than 48hours before the time fixed for the meeting. A hard copy of the proxy form is included in the Annual Report and a soft copy may be downloaded from www.goldhousesolicitors.comor . The audited financial statements are also available on both websites.www.petrodata.net
DIVIDENDIf approved, dividend will be paid to shareholders, whose names appear in the register of members as at the close of business on the 24 of May, 2018. Only active shares as at 31 December, 2017 business year will
th st
qualify for dividend. Those who have completed and returned the e-payment mandate form will have their bank accounts credited immediately after the meeting while those who are yet to complete the process will be paid in due course.
CLOSURE OF REGISTERThe register of members will be closed from 24 of May, 2018 to 31 May, 2018 to enable the Registrars prepare th st
for payment of dividend.
Dated this 10 day of May 2018th
BY THE ORDER OF THE BOARD
PETRODATA MANAGEMENT SERVICES LIMITEDFINANCIAL STATEMENTS FOR THE YEAR ENDED 31, 2017
NIGERIAN ECONOMY
The year 2017 commenced with the Federal
Government announcing a series of projections for
growth and recovery in the aftermath of the
recession of 2016. In the first quarter of the year, the
Federal Government launched the Economic
Recovery and Growth Plan aimed at stemming the
slide in the economy, and to derive increasingly
higher revenues from non-oil sectors to support key
infrastructural development programs, as well as
achieve sustainable diversification of the economy
amongst other objectives.
These projections, however, encountered temporary
setbacks due to the delayed passage of the 2017
budget on which these growth plans were
predicated, and, just like the previous year, 2017
budget also suffered similar fate with its attendant
consequences on the economy and delayed
infrastructural projects.
The Federal Government also adopted several
initiatives in the year, particularly in the oil sector, to
gradually exit the country from perpetual importation
of petroleum products and to ensure self-reliance in
the production of the commodities, with the
introduction and adoption of a policy on modular
refineries. The modular refinery initiative is expected
to reduce petroleum products importation by about
60% by end of 2018, ostensively by the hyped up
commitments to the initiative.
Distinguished Ladies and Gentlemen, Shareholders of Petrodata Management Company Limited, and my Co-
ndDirectors, I welcome you all to the 22 Annual General Meeting of our Company. Permit me to present to you the report of our stewardship for the year ended December
st31 2017.
Chairman’sStatement
6
PETRODATA MANAGEMENT SERVICES LIMITEDFINANCIAL STATEMENTS FOR THE YEAR ENDED 31, 2017
Chairman’sStatement
Engr. B.A Soyode
Chairman Board of Directors
TURNOVER
In spite of the aforementioned challenges, your
Company posted a turnover of N520.8million in the
year under review, about 10% above the N473million
recorded in 2016, while Profit after tax increased by
27% to N126million in the year 2017.
I am pleased to inform you that your Board gave the
necessary approval for the commencement of
construction of the first phase of our permanent site,
to which we plan to relocate our business on or before
the end of the current financial year. As an aside, the
foundation laying ceremony of the building took place rdon Monday 23 April, 2018. It is rather disappointing,
however, that only very few of the shareholders
invited graced the occasion.
DIVIDEND
The Board of Directors is proposing a dividend of N3
per N10.00 share held by each shareholder,
representing a 50% increase over the dividend in
2016. We especially want to thank you, our
shareholders, for your patience and confidence in the
Board and Management of your Company. The
approved dividend will be paid to all shareholders,
who might have completed the e-dividend mandate
form, immediately after this meeting.
STAFF DEVELOPMENT
As part of our strategic policy for capacity building of
staff to enhance their effectiveness and productivity,
your company sponsored some managerial cadre
staff to the Executive Education Programme at the
Lagos Business School (LBS) in the year. We hope to
continue effective implementation of this policy in the
coming years in order to ensure that our staff surpass
their previous achievements, and to position the
Company for smooth succession wherever and
whenever necessary in the Organization.
On your behalf and Board Members, I wish to thank
our Management and dedicated staff for their hard
work in this austere business operating environment,
and exhort them to greater achievement in future.
OBITUARY
It is with utmost sadness and deepest regret that I have to
announce to you the demise of our beloved co-director, Mr
Tek Koroye, who passed away suddenly after a brief illness
in November 2017. We have since performed the
necessary obligations to his family. We shall surely miss
his wise counsel and contributions to the deliberations of
the Board as well as his generally buoyant mood. May his
soul continue to rest in perfect peace.
FUTURE OUTLOOK
Having survived the recession of 2016 albeit with great
difficulty, the Company is expected by your Board, with
great optimism, to continue to grow with the increasing
opportunities to support our proposed diversification in
the e-business domain.
In view of the foregoing, your Board and Management will
continue to strive assiduously to take advantage of the
prospective improvement in the business environment,
resulting from the increase in oil prices and the relative
stability in the Niger Delta to continue to add value to your
investment.
CONCLUSION
I thank you all for your continuing support, patience and
understanding and wish you safe journey back to your
respective destinations.
7
PETRODATA MANAGEMENT SERVICES LIMITEDFINANCIAL STATEMENTS FOR THE YEAR ENDED 31, 2017
Dear Shareholders, I am delighted ndto welcome you to the 22 Annual
General Meeting of your company and to present your company's scorecard for the 2017 financial year.
BUSINESS OVERVIEW
The Nigerian economy showed
some growth, with a real GDP
growth of 1.92% in Q4, and
overall growth of 0.83% in 2017, compared to the
contraction of 1.58% witnessed in the previous year.
This is attributable to several factors including the
availability of forex for importation of raw materials
and machinery. The Central Bank in its efforts to
strengthen the Naira also introduced several monetary
policies to curb overdependence on parallel market
and bureau de change operators for forex demands.
This initiative was responsible for marginal boosts
recorded in the activities of small and medium scale
enterprises in the year as part of diversification efforts
of the present administration.
The Oil sector grew by over 4% overall in 2017 with
production rising to N1.91 million barrels in Q3 to over
N2Million Barrels per day in Quarter 4 and average oil
price was $45.7 in 2017. Inflation was on a downward
trend through the year and external reserve grew by
48%, to about $38Bn.
It is hopeful that with the Central Bank of Nigeria's
commitment to continue with its intervention policy,
the naira will stabilize against the dollar in the
immediate, while legitimate users of forex will continue
to have unhindered access to forex.,
Managing Director’sReport
8
BUSINESS REVIEW
Year 2017 was a very important year for
your company, as we took bold steps in
three core growth areas for our
business. First was, commencing the
physical development of our permanent
site as a result of the danger posed by
our proximity to OLUSOSUN, the Lagos
state dump site and threat from Ogun
state government to revoke the
certificate of occupancy, the second was embarking on
further diversification, through our Joint Venture
Partner, TGS and third was providing back-up storage
facility for National Data Repository (NDR) as we strived
to enhance overall shareholders' value and improve our
balance sheet.
Ladies and gentlemen, I am happy to report to you that
we made good progress on these identified indices,
despite the challenges in the economy and operating
environment. As reported last year, the tender process
and award for construction of the Phase one building at
the permanent site along the Lagos Ibadan express way
commenced in the last quarter of the year, in order to
secure and take possession, we commenced with the
perimeter fence which was completed in December
2017. The ceremonial foundation/ground breaking
ceremony recently took place in April 2018 witnessed
by the directors, some shareholders and staff. For cost
savings, we have adopted a modified supervised direct
labor for the first phase. Thankfully by the Grace of
GOD, your company will relocate permanently to this
new site by December 2018, when the first phase is
expected to have been completed.
PETRODATA MANAGEMENT SERVICES LIMITEDFINANCIAL STATEMENTS FOR THE YEAR ENDED 31, 2017
Our JV Partnership project with TGS took off as we
received complete data from DPR through CGG, and
commenced the reprocessing of a text line chosen.
Marketing to potential offtakes will commence prior to
full re-processing. We have also submitted two
supplements for approval in respect of two projects
involving acquisition of multi Beam and Coring data
over the entire Niger Delta.
Your company achieved a feat in convincing the Department of Petroleum Resources, (DPR) of our capability to stores and manage the physical seismic tapes backups from the National Data Repository (NDR).
PERFORMANCE OVERVIEW
Our Turnover increased by 10% above 2016 figures, also gross profit was over 25% above previous year, “using less to produce more”, revenue from other income reduced significantly as FX gain reduced due to stability in the foreign exchange market. As such, our core business contributed more to our revenue. Your company's assets and shareholders' funds grew by 18% and 20% respectively.
FUTURE OUTLOOK
We will take advantage of relocating to the new site to expand the e-business side of our portfolio, our strategy is to provide disaster recovery and cloud services to small and medium scale enterprises and non-mission critical businesses. Your company will require additional fund injection for these new area of business, conservatively about $2.5Million will be required over the next 3 years to be spent on acquisition of servers and internet backbone. We have commenced preliminary discussion with the Bank of Industry with a view to taking advantage of the local
content development fund specifically for the Oil and Gas sector.We are confident that, the new site will project us more as a mid-range data service provider for mostly SME's and mid-sized companies. As we witness improvement in oil production due to the relative calmness in the Niger Delta area, Government is expected to consolidate on this feat to further increase oil outputs and meet up with its OPEC Quota, this in turn, is expected to stimulate exploration activities and further diversify the economy with the gains from oil sales. We are positioned with our Joint Venture partner, TGS, to benefit from the planned oil block licensing round, by making high-quality data available in the deep-water Niger Delta to prospective investors.
APPRECIATION
I would like to express my gratitude to the Board of
Directors and our Shareholders for their continued
support. I use this opportunity to thank our staff for
their loyalty and dedication throughout these
challenging times.
Thank you
Mr. Wole ShebiobaManaging Director
Managing Director’sReport
9
PETRODATA MANAGEMENT SERVICES LIMITEDFINANCIAL STATEMENTS FOR THE YEAR ENDED 31, 2017
The Directors are pleased to present their report on the affairs of the Company together with the audited
financial statements and Auditors' report for the business year ended 31st December, 2017
1. LEGAL FORM
Petrodata Management Services Limited (“Petrodata” or the “Company”) was incorporated in 1994 as a private limited liability company. The Company's authorized share capital is N250,000,000.00 divided into 25,000,000 ordinary shares of N10.00 each. There was no change during the year under review.
2. PRINCIPAL ACTIVITY
The Company continues to maintain its pioneering status and leadership position in the core business of seismic data storage and management in Nigeria and some parts of West Africa. Its e-Business consisting of cloud storage services and electronic data management services have been fully integrated into the mainstream of its operations. The Board and Management have continued to articulate strategies aimed at growing and expanding all business lines. The Board and Management are currently working on expanding the scope of Cloud Computing business.
3. STATE OF AFFAIRS/GOING CONCERN
The Auditors' report and Directors' evaluation of management reviews presented over the last twelve months
confirm the Company's healthy state of affairs with the profit before tax on the increase and robust cash flow.
4. RELATED COMPANIES
The Company has two fully owned subsidiaries; Petrodata Estate Limited and Mapleleaf Technologies
International Limited and a joint venture company; TGS-Petrodata Offshore Services Limited.
5. OPERATING RESULT
The following is a summary of the Company's operating result:
The Company's revenue increased by 10%, cost of sales reduced by 13%, gross profit increased by 26%, operating expenses increased by 12% while profit before and after tax reduced by 1% and increased by 27% respectively. The following is a summary of the Company's operating results:
Director’s Report
10
Revenue
Cost Of Sales (166,196,425) (190,734,857)
354,615,697Gross Profit 282,349,394
Other Income 21,201,363 72,560,184
Operating Expenses (214,582,404) (191,920,805)
Operating Profit/ Profit Before Tax 161,234,656 162,988,773
Taxation (34,984,469) (63,743,131)
Profit after Tax 126,250,187 99,245,642
520,812.122 473,084,251
2017N
2016N
%Change
10
(13)
26
(71)
12
(1)
(45)
27
PETRODATA MANAGEMENT SERVICES LIMITEDFINANCIAL STATEMENTS FOR THE YEAR ENDED 31, 2017
6 DIVIDENDS.
The Company has consistently paid dividends to the Shareholders since 2005 Annual General Meeting.
Director’s Report
TRADING YEARS
2005 =N=2.50 Per Share of =N=100.00 Nill
2006 =N=15 Per Share of =N=100.00 Nill
2007 =N=15 Per Share of =N=100.00 Nill
2008 =N=25 Per Share of =N=100.00 Nill
2009 =N=25 Per Share of =N=100.00 Nill
2010 =N=15 Per Share of =N=100.00 One share for every fullypaid share
2011 =N=15 Per Share of =N=100.00 Nill
2012 =N=1.15 Per Share of =N=10.00 Nill
2013 =N=1.20 Per Share of =N=10.00 Nill
2014 =N=0.15 Per Share of =N=10.00 Nill
2015 =N=1.50 Per Share of =N=10.00 Nill
2016 =N=2.00 Per Share of =N=10.00 Nill
11
PETRODATA MANAGEMENT SERVICES LIMITEDFINANCIAL STATEMENTS FOR THE YEAR ENDED 31, 2017
The financial statements set out on pages 20 to 48, which have been prepared on the going concern basis, were
approved by the Board on 30th March, 2018. After due consideration, the board recommended the payment of
N54,669,210.00 (Fifty-Four Million, Six Hundred and Sixty-Nine Thousand, Two Hundred and Ten Naira) only to
shareholders as dividend for 2017 business year at the rate of N3.00 (Three Naira) per share of N10.00 nominal
value. The dividend is subject to deduction of 10% withholding tax, applicable to both corporate and individual
Shareholders.
8. SUBSTANTIAL INTEREST IN SHARES
According to the register of members as at 31st December, 2017, the combined holding of three shareholders (Niger Delta Exploration and Production Plc, Eniwa Holdings International Limited and Alatede Trusts 2000) stands at 26% with each having more than 5% each of the issued share capital of the Company.
Director’s Report
7. SHAREHOLDING ANALYSIS
The Shareholding pattern of the Company as at 31st December, 2017 is stated below
RANGENUMBER OF SHARES
AS % OF TOTAL SHAREHOLDING
4
8.1
11.8
18.7
16.1
41.3
100
0 - 100,000 8736, 250
100,001 - 200,000 11 1, 481, 600
200,001 - 400,000 7 2,149,240
400,001 - 600,000 6 3, 410,420
600,000 - 1,000,000 4 2,926,000
Above 1,000,000 4 7,519,560
TOTAL 40 18,223, 070
182,230,700 18,223,070 73.00
Balance 67,769,300 6,776,930 27.00
TOTAL 250,000,000 25,000,000 100
Issued
% AUTHORISEDCAPITAL
NO. OF SHARES
NUMBER OF SHAREHOLDERS
NUMBER OF SHARES HELD
12
PETRODATA MANAGEMENT SERVICES LIMITEDFINANCIAL STATEMENTS FOR THE YEAR ENDED 31, 2017
9. DIRECTORS AND SHAREHOLDING
The interest of the Directors in the issued share capital of the Company as recorded in the Register of Members and in compliance with Section 275 of the Companies and Allied Matters Act are as follows:
DIRECTORS DIRECT
SHAREHOLDING INDIRECT
SHAREHOLDING TOTAL
SHAREHOLDING
10. DIRECTORS' INTEREST IN CONTRACTS
None of the Directors has notified the company of any declarable interest in contract(s) in which the company has awarded or was awarded pursuant to Section 277 of the Companies And Allied Matters Act, 1990 in 2017.
11. THE BOARD
The Board consists of seven members; one (1) Executive Director, and six (6) Non-Executive Directors. The positions of the Chairman and Managing Director are held by different Directors. The Managing Director is responsible for implementing the Board's business strategies, policies and runs the day –to - day affairs of the Company. The Chairman and some other Directors periodically review management's performance and provide direction where necessary beyond the Board meetings. The names of the Directors in office during the period under review and those still in office as at the date of this report are as indicated on page1
Director’s Report
Engr. Babajide .A.
SOYODE
2,446,900Eniwa Holding
International Limited
2,446,900
Dr. Olufemi A.
LALUDE
790,000
790,000
Chief (Mrs.) Marlies
ALLAN
712,000
474,660Babatunde Quincy
Allan
1,186,660
Mr. Wole
SHEBIOBA
118,660
15,000
Staff Share Scheme
133,660
Chief Richard D.
ADELU
1,006,000
Radinvest
Nigeria Limited
1,006,000
Taukeme KOROYE 550,000
550,000
TOTAL 2,170,660 3,942,560 6,113,220
13
PETRODATA MANAGEMENT SERVICES LIMITEDFINANCIAL STATEMENTS FOR THE YEAR ENDED 31, 2017
13. CORPORATE GOVERNANCE
The Company's corporate governance policy remains unchanged throughout the year. The Board and Management have continued to guide the operation of its business activities effectively with the following instruments:
(i) Corporate Governance Guidelines (ii) Code of Business Principles(iii) Ethics/ Conflict of interest Policy(iv) Anti-Corruption Policy.
14. PROCUREMENT PROCEDURES
The Board and Management continue to implement the financial authorities for procurement of capital and revenue items introduced. These are the Managing Director Financial Authority (MDFA), the Management Financial Authority (MDFA), the Management Financial Authority (MFA) and the Board Financial Authority (BFA).
12. BOARD MEETING/ATTENDANCES
The Board scheduled minimum of four meetings every year. The following table shows the number of meetings, the dates and attendance of each Directors.
Director’s Report
Dr. Olufemi A.
LALUDE
Chief (Mrs.) Marlies
ALLAN
Mr. Wole
SHEBIOBA
Chief Richard D.
ADELU
Mr. Taukeme KOROYE
Mr. Adebayo AKINPELU
(with apology)
Absent
Present
Present
Present
Present
Present
(with apology)
Absent
(with apology)
Absent
(with apology)
Absent
Present
Present
Present
Present
Present
Present
Present
3
4
5
6
7
(with apology)
Present
Present
Present
Present
Present
(with apology)
Absent
Present
(with apology)
Absent
(with apology)
Absent
Engr. Babajide .A.
SOYODE
Present
Present
Present
Present
Present
Present
Present
Present
1
2 Present
Absent
NAMES S/N 86th BOARDMEETING30/3/2017
8th BOARDMEETING25/5/2017
88th BOARDMEETING27/7/2017
89th BOARDMEETING
26/10/2017
90th BOARDMEETING
07/12/2017
14
PETRODATA MANAGEMENT SERVICES LIMITEDFINANCIAL STATEMENTS FOR THE YEAR ENDED 31, 2017
Director’s Report
15. PROPERTY, PLANT AND EQUIPMENT
The Company acquired additional property, plant and equipment during the year under review in accordance with part 1 section (1) of the fifth schedule of the Act. The total value of additional property, plant and equipment was N47, 424,010.
16. EMPLOYMENT AND EMPLOYEES
(I) Staff Strength.
The Company has total staff strength of 36 comprised of 2 management staff, 34 other staff and 16 interns comprising of National Youth Service Corp members (NYSC), Industrial Trainees and 1 contract staff served in the organization at various times during the year.
(ii) Training and Skills Development.
The Company continues to equip all its employees with essential skills and knowledge required for successful performance in accordance with its Staff Skill Acquisition policies. The Board periodically identifies, considers and implements training needs of employees to meet business requirements. Management has now adopted the 'Train the Trainer' policy in order to reduce the cost of training.
(iii) Employment of Physically Challenged Persons.
There is currently, no physically challenged person in the employment of the Company. The Company does not discriminate in the employment of persons. However, it is necessary to confirm that an individual seeking employment with the Company can discharge its duties and responsibilities the disability notwithstanding. This is the main guiding principle.
(iv) Employment Staff Share Scheme
The Company approved the creation of Employee Staff Share Scheme (Scheme) in accordance with Part III of the thFifth Schedule at the 16 annual general meeting. The Scheme holds a total of 5% of the authorized share capital
of the Company. The Directors have approved the Articles of terms and conditions to manage the Scheme and one of the Directors chairs the Management Board.
The Scheme has a total of 1,250,000 units of ordinary shares. Pursuant to section 160 ( c) and as required under Part II of the Fifth Schedule of the Act, a total of 31,250 units of ordinary shares of N10 each at N20 per share held under the Scheme was surrendered and acquired by the Company during the year at a cost of N625,000. The shares are held in trust by the Management Board for the Employees Staff Share Scheme until it is acquired.
(v) Employees' Gratuity Scheme
In 2012 the Board established Staff Gratuity Scheme and appointed Stanbic IBTC Management Company Limited as Managers of the funds. Staff are eligible to benefit from the Scheme after five (5) years in active continuous service at the point of termination of employment or retirement. Gratuity will be based on basic salary at the rate of one month basic salary for every year of uninterrupted service and becomes operative after qualification on individual basis.
15
PETRODATA MANAGEMENT SERVICES LIMITEDFINANCIAL STATEMENTS FOR THE YEAR ENDED 31, 2017
Company Secretaries
Fatima Abdulazeez and Company
Legal Practitioners
FRC/2015/NBA/00000011918
30th March, 2018
Director’s Report
(vi) Employees Consultation
The Managing Director briefs the Staff periodically on decisions of the Board that affects their employment and also the financial/economic factors affecting the performance of the business. He also briefs the Board on
feedbacks, views and opinions of the staff.
17. HEALTH, SAFETY, SECURITY AND ENVIRONMENT
The Company conducts all its activities giving utmost regard to the Health, Safety and Security of the employees, clients' stored data and members of community in its area of operation. Conscious efforts are made to preserve the physical and human environment.
In implementing this policy, Petrodata will not only comply with requirements of clients' policies and all relevant legislations but also promote, in an appropriate manner, measures for protection of health, safety and security of all who may be affected by the companys' activities and the environment.
18. EVENT AFTER THE REPORTING PERIOD
The Directors did not identify any event after the reporting period capable of having any material effect on the financial position of the Company as at date. The year sees the Country's economy gradually gaining momentum towards recovery. This should have a positive effect on the business of the Company.
19. DONATIONS
The Company made a total of N2, 538,808 (Two million, Five hundred and thirty- eight thousand Eight
hundred and eight naira) donation during the year. The Board will explore other areas of expressing its
corporate social responsiblity.
20. AUDITORS
The Auditors, Abax-OOSA Professionals having expressed their willingness will continue in office as Auditors in accordance with section 357(2) of the Companies and Allied Matters Act of Nigeria, Cap C20 LFN 2004.
By the Order of the Board of Directors
16
PETRODATA MANAGEMENT SERVICES LIMITEDFINANCIAL STATEMENTS FOR THE YEAR ENDED 31, 2017
Managing Director
Mr. Wole Shebioba FRC/2015/NAPE/00000011842
Manager Accounts Oluwatoyin Olusegun-Asaju
FRC/2015/ICAN/00000011762
ChairmanEngr.Babajide A. Soyode
FRC/2015/COREN/00000011804
The accounting policies on pages 24 to 37 and the notes on pages 38 to 44 form an integral part of the financial statements
Statement of FinancialPosition as at31st December 2017
2017 2016 Note(s) N. N.
Assets Non-Current Assets Property, plant and equipment 2 135,168,061 110,331,505 Intangible assets 3 5,727,741 8,755,371
140,895,802 119,086,876
Current Assets Inventories 4 7,153,975 16,705,408 Trade and other receivables 5 295,428,447 267,049,689 Prepayments 6 19,000,873 31,704,919 Cash and cash equivalents 7 233,286,266 156,129,498
554,869,561 471,589,514
Total Assets 695,765,363 590,676,390
Equity and Liabilities
Equity Share capital Share Premium Retained Earnings
Liabilities
Non-Current Liabilities Deferred tax
Current Liabilities Trade and other payables Current tax payable
TotalLiabilities
Total Equity and Liabilities
8 182,230,700 182,230,700 8 13,099,780 13,099,780
338,339,544 248,535,497
533,670,024 443,865,977
9 37,463,862 48,902,339
10 67,750,235 52,353,316 11 56,881,242 45,554,758
124,631,477 97,908,074
162,095,339 146,810,413
695,765,363 590,676,390
The financial statements and the notes on pages 20 to 44 were approved by the board on the 30th March, 2018 and were signed on its behalf by:
20
PETRODATA MANAGEMENT SERVICES LIMITEDFINANCIAL STATEMENTS FOR THE YEAR ENDED 31, 2017
The accounting policies on pages 24 to 37 and the notes on pages 38 to 44 form an integral part of the financial statements.
Statement of Profitor Loss and Other Comprehensive Income
Revenue
Note(s) 2017 2016
N N
12 520,812,122 473,084,251
Cost of sales 13 (166,196,425) (190,734,857)
Gross profit 354,615,697 282,349,394
Other income 14 21,201,363 72,560,184
Operating expenses 15 (214,582,404) (191,920,805)
Operating profit 162,988,773161,234,656
Profit before taxation 161,234,656 162,988,773
Taxation 16 (34,984,469) (63,743,131)
Profit for the period 126,250,187 99,245,642
Other comprehensive income
Total comprehensive income for the period 126,250,187 99,245,642
21
PETRODATA MANAGEMENT SERVICES LIMITEDFINANCIAL STATEMENTS FOR THE YEAR ENDED 31, 2017
Statement of Changesin Equity
Balance at January 1, 2016 182,230,700 13,099,780 195,330,480 176,577,585 371,908,065
Profit for the period
Other comprehensive income - - -
Total comprehensive incomefor the period
- - -
Dividends (27,287,730) (27,287,730)- - -
Total contributions by and distributions to owners of company recognised directly in equity
- - -
Balance at January 1, 2017 182,230,700 13,099,780 195,330,480 248,535,497 443,865,977
Profit for the period - - - 126,250,187
Other comprehensive income - - - - -
Total comprehensive income for the period
- - -
Dividends - - - (36,446,140)
Total contributions by and distributions to owners of company recognised directly in equity
- -
Share capital
N.
Share premium
N.
Total share capital
N
Retained profit
N.
Total equity
N.
Balance at December 31, 2017 182,230,700 13,099,780 195,330,480 338,339,544 533,670,024
Note(s) 8 8 8
99,245,642 99,245,642
99,245,642 99,245,642
(27,287,730) (27,287,730)
126,250,187
126,250,187 126,250,187
(36,446,140)
(36,446,140) (36,446,140)
22
PETRODATA MANAGEMENT SERVICES LIMITEDFINANCIAL STATEMENTS FOR THE YEAR ENDED 31, 2017
Cash flows from operating activities
Cash generated from operations 18 196,123,382 172,117,610
Tax paid 19 (35,096,463) (27,798,815)
Net cash from operating activities 161,026,919 144,318,795
Cash flows from investing activities
Purchase of property, plant and equipment 2 (47,424,011) (33,920,118)
Sale of property, plant and equipment 2 - 1,200,000
Purchase of other intangible assets 3 (8,054,985)
Net cash from investing activities (47,424,011) (40,775,103)
Cash flows from financing activities
Dividends paid 20 (36,446,140) (27,287,730)
Total cash movement for the period 77,156,768 76,255,962
Cash at the beginning of the period 156,129,498 79,873,536
Total cash at end of the period 7 233,286,266 156,129,498
Note(s) 2017N.
2016N.
The accounting policies on pages 24 to 37 and the notes on pages 38 to 44 form an integral part of the financial statements.
Statement of Cash Flows
23
PETRODATA MANAGEMENT SERVICES LIMITEDFINANCIAL STATEMENTS FOR THE YEAR ENDED 31, 2017
1. Presentation of Financial Statements
REPORTING ENTITY
Petrodata Management Service Limited was incorporated in October 5, 1994 as a private Limited Liability Company, and is domiciled in Nigeria. The address of its registered office is Motorways Center, 1 Motorways Avenue, Alausa, Ikeja, Lagos. The Company is principally enagaed in the provision of data storage and manangement for Clients in the petroleum, financial and other sectors of the economy.
BASIS OF PREPARATION
(a) Statement of Compliance
The financial statements of the company are prepared in accordance with International Financial Reporting Standards ("IFRSs") as issued by the International Accounting Standards Board ("IASB") and in the manner required by the Companies and Allied Matter Act of Nigeria and the Financial Reporting Council of Nigeria Act, 2011.
An explanation of how IFRSs affects the reported financial position, financial performance and cash flows of the Company are provided in the financial statements.
(b) Basis of Measurement
Financial assets and financial liabilities are stated on a fair value basis of measurement. Property, Plant and equipment is stated at cost, being the fair value of the consideration given at the time of acquisition. Subsequent measurement of Property, Plant and Equipment is shown at cost. Employee benefits are recognised on a present value basis. All other assets, liabilities and provisions are initially measured Financial instruments are measured at fair value.
(c) Functional and Presentation Currency
These financial statements are presented in Nigerian Naira which is the company's functional currency. In certain instances, financial information presented in Nigerian Naira are rounded to the nearest thousand
New Acounting Standards issued but not yet Effective
The following are standards issued by the IASB but not yet effective. The company's assessment of the impact of these new or amended standards is that there will not be material impact on the financial statement.
Accounting Policies
STANDARD CONTENT EFFECTIVE YEAR
IFRS 9 Financial instruments 1st January 2018
IFRS 15 Revenue from contracts with customers 1st January 2018
IFRS 16 Leases 1st January 2019
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PETRODATA MANAGEMENT SERVICES LIMITEDFINANCIAL STATEMENTS FOR THE YEAR ENDED 31, 2017
Accounting Policies
IFRS 9: Financial Instruments - Classification and Measurement
IFRS 9 as issued reflects the first phase of the IASB's work on the replacement of IAS 39 and applies to classification and measurement of financial assets and financial liabilities as defined in IAS 39. The standard is effective for annual periods beginning on or after 1 January 2018. IFRS 9 requires financial assets to be classified into two measurement categories: those measured at fair value and those measured at amortised cost. The determination is made at initial recognition. The classification depends on the entity's business model for managing its financial instruments and the contractual cash flow characteristics of the instrument. For financial liabilities, the standard retains most of the IAS 39 requirements. The main change is that, in cases where the fair value option is taken for financial liabilities, the part of a fair value change due to an entity's own credit risk is recorded in other comprehensive income rather than the income statement, unless this creates a qualitative mismatch. The adoption of the first phase of IFRS 9 will have an effect on the classification and measurement of the Company's financial assets, we will now have two main categories of financial assets i.e. fair value and amortized cost (as opposed to the four categories prescribed by IAS 39 - fair value through profit & loss, loans & receivables, held to maturity and available for sale financial assets) but will potentially have no impact on classification and measurements of financial liabilities. The Company intends to adopt IFRS 9 not later than the accounting period beginning 1 January 2018.
IFRS 15: Revenue from Contract with Customers IFRS 15 specifies how and when an IFRS reporter will recognise revenue as well as requiring such entities to provide users of financial statements with more informative, relevant disclosures. The objective of this standard is to establish the principle that entity shall apply to report useful information to the user of financial statement the nature, amount, timing and uncertainty of revenue and cash flow arising from contract with customers.
IFRS 16: Leases
IFRS 16 specifies how an IFRS reporter will recognise, measure, present and discloses leases. The standard provides a single lessee accounting model, requiring lessees to recognise assets and liabilities for all leases unless the lease term is 12 months or less or the underlying asset has a low value. Lessors continue to classify leases as operating or finance, with IFRS 16's approach to lessor accounting substantially unchanged from its predecessor, IAS 17. This standard was issued on 13 January 2016 and will become applicable on 1 January 2019.
1.1 Accounting Estimates and Judgements
The preparation of the financial statements in conformity with IFRS requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates is revised and in any future periods affected.
Judgements made in the application of IFRS that could have a significant effect on the financial statements and estimates with a risk of adjustment in future are as follows:
Recovery of deferred tax assets temporary differences as management considers that it is probable that future taxable profits will be available to utilise those temporary differences..
Estimation of economic life of Property, Plant and Equipment Impairment - the company assesses impairment of all receivables at reporting date by evaluating any issue
particular to an asset that may lead to impairment.
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PETRODATA MANAGEMENT SERVICES LIMITEDFINANCIAL STATEMENTS FOR THE YEAR ENDED 31, 2017
1.2 Property, Plant and Equipment
Property, plant and equipment are tangible assets which the company holds for its own use or for rental to others and which are expected to be used for more than one period.
An item of property, plant and equipment is recognised as an asset when it is probable that future economic benefits associated with the item will flow to the company, and the cost of the item can be measured reliably.
Property, plant and equipment is initially measured at cost. Cost includes all of the expenditure which is directly attributable to the acquisition or construction of the asset, including the capitalisation of borrowing costs on qualifying assets and adjustments in respect of hedge accounting, where appropriate.
Depreciation of an asset commences when the asset is available for use as intended by management. Depreciation is charged to write off the asset's carrying amount over its estimated useful life to its estimated residual value, using a method that best reflects the pattern in which the asset's economic benefits are consumed by the company. Leased assets are depreciated in a consistent manner over the shorter of their expected useful lives and the lease term. Depreciation is not charged to an asset if its estimated residual value exceeds or is equal to its carrying amount. Depreciation of an asset ceases at the earlier of the date that the asset is classified as held for sale or derecognised.
The useful lives of items of property, plant and equipment have been assessed as follows:
The residual value, useful life and depreciation method of each asset are reviewed at the end of each reporting period. If the expectations differ from previous estimates, the change is accounted for prospectively as a change in accounting estimate.
The depreciation charge for each period is recognised in profit or loss unless it is included in the carrying amount of another asset.
Impairment tests are performed on property, plant and equipment when there is an indicator that they may be impaired. When the carrying amount of an item of property, plant and equipment is assessed to be higher than the estimated recoverable amount, an impairment loss is recognised immediately in profit or loss to bring the carrying amount in line with the recoverable amount.
An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected from its continued use or disposal. Any gain or loss arising from the derecognition of an item of property, plant and equipment is included in profit or loss when the item is derecognised. The gain or loss arising from the derecognition of an item of property, plant and equipment is determined as the difference between the net disposal proceeds, if any, and the carrying amount of the item.
1.3 Intangible Assets
Intangible assets comprise acquired proprietary tools and capitalised computer software not integral to a related item of hardware.
(a) Research and Development Costs
All research and development costs are expensed as incurred. These costs generally consist of professional services provided by third parties and compensation costs of employees.
Unearned course development costs are capitalised when it is probable that that future economic benefit associated with the item will flow to the entity. Capitalised development costs are amortised on a straightline basis over the period of their expected benefits.
Accounting Policies
26
PETRODATA MANAGEMENT SERVICES LIMITEDFINANCIAL STATEMENTS FOR THE YEAR ENDED 31, 2017
(b) Purchased Computer Software
The Company capitalises costs related to software developed or obtained for internal use. These assets are included in property and equipment in the balance sheet, relate to the Company's accounting, product delivery and other systems. Such costs generally consist of direct costs for third-party license fees, each case incurred either during the application development stage or in connection with upgrades professional services provided by third parties and employee compensation, in and each case incurred enhancements that increase functionality. Such costs are depreciated over their estimated useful lives on a straight-line basis. Where the computer software is not an integral part of the hardware, the costs are accounted for separately as intangible assets.
After initial recognition, intangible assets are carried at cost less accumulated amortisation and accumulated impairment losses. The residual value of intangible assets is assumed to be zero. An asset's carrying amount is written down to its recoverable amount if the asset's carrying amount is greater than its estimated recoverable amount.
(c) Ammortisation of Software
Amortization is calculated to write off the cost of intangible assets less their estimated residual values using the straight-line method over their estimated useful lives, and is recognised in profit or loss. The estimated useful life for the current and comparative period is as follows:
- Intangible Assets 5 years
1.4 Financial Instruments
Classification
The Company's financial instruments include cash, cash equivalents, trade receivables and payables, all of which are short-term in nature and, accordingly, approximate fair value. Additionally, the entity invests in short-term investments that are measured at fair value.
Recognition and Measurement
Financial assets and financial liabilities are recognised in the statement of financial position when the company becomes a party to the contractual provisions of the instrument. Financial assets and financial liabilities are initially recognised at their fair value plus in the case of all financial assets not carried at fair value through profit or loss, transaction costs that are directly attributable to their acquisition. Purchases and sales of financial instruments are measured on a settlement-date basis.
Financial liabilities and equity instruments, issued by the company, are classified according to the substance of the contractual arrangements entered into and the definitions of a financial liability and an equity instrument. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Investments made by the company which are classified as available-for-sale, and are measured at subsequent reporting dates at fair value.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair values of quoted investments and unit trusts in active markets are based on current market prices.
Accounting Policies
27
PETRODATA MANAGEMENT SERVICES LIMITEDFINANCIAL STATEMENTS FOR THE YEAR ENDED 31, 2017
(a) Fair Value Hierachy
Fair values are determined according to the following hierarchy based on the requirements in IFRS 7 'Financial Instruments: Disclosures':
– Level 1: quoted market prices: financial assets and liabilities with quoted prices for identical instruments in active markets.
– Level 2: valuation techniques using observable inputs: quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in inactive markets and financial assets and liabilities valued using models where all significant inputs are observable.
– Level 3: valuation techniques using significant unobservable inputs: financial assets and liabilities valued using valuation techniques where one or more significant inputs are unobservable.
Financial Assets Classification
Financial assets are classified into the following categories: financial assets at fair value through profit or loss; loans and receivables, held-to-maturity and available-for-sale financial assets. Management determines the classification of financial assets at initial recognition; this classification depends on the nature and purpose of the financial asset as follows.
(b) Loans and Receivables
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. These arise when the company provides money, goods or services directly to a debtor with no intention of trading the receivable. Subsequent to initial recognition loans and receivables are measured at amortised cost using the effective interest method, less impairment losses.
(c) Available-for-Sale
Available -for-sale instruments are those intended to be held for an indefinite period of time, which may be sold in response to needs for liquidity or changes in interest rates, exchange rates or equity prices. Subsequent to initial recognition, financial assets classified as available-for-sale are measured at fair value on the statement of financial position.
(d) Held-to-Maturity
Held- to-maturity investments are non -derivative financial assets with fixed or determinable payments and fixed maturities that management has both the positive intent and ability to hold to maturity. The consolidated entity does not currently hold financial assets that are fair valued through Profit or loss.
(e) Financial Liabilities
Financial liabilities are recognised initially at fair value, generally being their issue proceeds net of transaction costs incurred. Financial liabilities are subsequently stated at amortised cost and interest is recognised over the period of the borrowing using the effective interest method.
Accounting Policies
28
PETRODATA MANAGEMENT SERVICES LIMITEDFINANCIAL STATEMENTS FOR THE YEAR ENDED 31, 2017
Accounting Policies
(f) Gains and Losses
Gains and losses arising from changes in the fair value of the 'financial assets at fair value through profit or loss' category are included in profit or loss in the period in which they arise. Gains and losses arising from changes in the fair value of available-for-sale financial assets are recognised in comprehensive income, until the financial asset is derecognised or impaired at which time the cumulative gain or loss previously recognised in comprehensive income is recognised in profit or loss.
(g) Effective Interest Method
The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts (including all fees on points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts) through the expected life of the debt instrument, or (where appropriate) a shorter period, to the net carrying amount on initial recognition. Effective Interest rate are not applied on debt Instrument payable within one or less than a year
(h) Offsetting Financial Instruments
Financial assets and liabilities are offset and the net amount reported in the statement of financial position when there is a legally enforceable right to offset the recognised and there is an intention to settle on a net basis or, realise the asset and settle the liability simultaneously.
Derecognition
Financial assets are derecognised when the contractual rights to receive cash flows from the investments have expired or have been transferred and the entity has also transferred substantially all risks and rewards of ownership.
Impairment of Financial Assets
(I) Assets carried at amortised cost
At each reporting date, the company assesses whether there is objective evidence that a financial asset or group of financial assets is impaired. A financial asset or a group of financial assets is impaired and impairment losses are recognised if, and only if, there is objective evidence of impairment as a result of one or more events that occurred after the initial recognition of the asset (a 'loss event') and that loss event (or events) has an impact on the estimated future cash flows of the financial asset or group of financial assets that can be reliably estimated.
The company first assesses whether objective evidence of impairment exists individually for financial assets that are individually significant, and individually or collectively for financial assets that are not individually significant. If the company determines that no objective evidence of impairment exists for an individually assessed financial asset, whether significant or not, it then includes the asset in a group of financial assets with similar credit risk characteristics and collectively assesses them for impairment.
Assets that are individually assessed for impairment and for which an impairment loss is or continues to be recognised are not included in the collective assessment of impairment. If there is objective evidence that an impairment loss on loans and receivables has been incurred, the amount of the loss is measured as the difference between the assets' carrying amount and the present value of estimated future cash flows
29
PETRODATA MANAGEMENT SERVICES LIMITEDFINANCIAL STATEMENTS FOR THE YEAR ENDED 31, 2017
discounted at the financial asset's original effective interest rate
The carrying amount of the asset is reduced through the use of an allowance account and the amount of the loss is recognised in profit or loss. If a loan has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract
When a loan is uncollectible, it is written off against the related provision for loan impairment. Such loans are written off after all the necessary procedures have been completed and the amount of the loss has been determined. Subsequent recoveries of amounts previously written off decrease the amount of the provision for loan impairment in profit or loss.
If, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognised (such as an improvement in the debtor's credit rating), the previously recognised impairment loss is reversed by adjusting the allowance account. The reversal shall not result in a carrying amount of the financial asset that exceeds what the amortised cost would have been had the impairment not been recognised at the date the impairment is
(ii) Assets Carried at Fair Value
At each reporting date, the company assesses whether there is objective evidence that a financial asset or a group of financial assets is impaired. In the case of investments classified as available-for- sale, a significant or prolonged decline in the fair value of the security below its cost is considered in determining whether the assets are impaired. If any such evidence exists for available-for-sale financial assets, the cumulative loss - measured as the difference between the acquisition cost and the current fair value, less any impairment loss on that financial asset previously recognised in profit or loss - is removed from comprehensive income and recognised in profit or loss. Impairment losses recognised in profit or loss on equity instruments classified as available-for-sale are not subsequently reversed through profit or loss, any increase in fair value subsequent to an impairment loss is recognised in other comprehensive income. However, if in a subsequent period the fair value of a debt instrument classified as available-for-sale increases and the increase can be objectively related to an event occurring after the impairment loss was recognised in profit or loss, the impairment loss is reversed through profit or loss.
Trade and Other Receivables
Trade receivables and other receivables are initially recognised at fair value and subsequently measured at amounts due, less any provision for impairment. Trade receivables are generally due for settlement within xxx days and are presented as current assets unless collection is not expected for more than 12 months after the reporting date.
Collectability of trade receivables is reviewed on an ongoing basis. Debts which are known to be uncollectible are written off by reducing the carrying amount directly. A provision for impairment of trade receivables is raised when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.
The amount of the impairment allowance is the difference between the asset's carrying amount and the present value of estimated future cashflows. The impairment loss is recognised in profit or loss within other expenses. When a trade receivable for which an impairment allowance had been recognised becomes uncollectible in a subsequent period, it is written off against the allowance account. Subsequent recoveries
Accounting Policies
30
PETRODATA MANAGEMENT SERVICES LIMITEDFINANCIAL STATEMENTS FOR THE YEAR ENDED 31, 2017
of amounts previously written off are credited against other expense in profit or loss.
Trade and Other Payables
Trade payables are initially measured at fair value, and are subsequently measured at amortised cost, using the effective interest rate method.
Cash and Cash Equivalents
Cash and cash equivalents comprise cash on hand and demand deposits and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of changes in value. These are initially and subsequently recorded at fair value.
Derivatives
Derivative financial instruments, which are not designated as hedging instruments, consisting of foreign exchange contracts and interest rate swaps, are initially measured at fair value on the contract date, and are re-measured to fair value at subsequent reporting dates.
Derivatives embedded in other financial instruments or other non-financial host contracts are treated as separate derivatives when their risks and characteristics are not closely related to those of the host contract and the host contract is not carried at fair value with unrealised gains or losses reported in profit or loss.
Changes in the fair value of derivative financial instruments are recognised in profit or loss as they arise.
Derivatives are classified as financial assets at fair value through profit or loss - held for trading.
Held to Maturity
These financial assets are initially measured at fair value plus direct transaction costs.
At subsequent reporting dates these are measured at amortised cost using the effective interest rate method, less any impairment loss recognised to reflect irrecoverable amounts. An impairment loss is recognised in profit or loss when there is objective evidence that the asset is impaired, and is measured as the difference between the investment's carrying amount and the present value of estimated future cash flows discounted at the effective interest rate computed at initial recognition. Impairment losses are reversed in subsequent periods when an increase in the investment's recoverable amount can be related objectively to an event occurring after the impairment was recognised, subject to the restriction that the carrying amount of the investment at the date the impairment is reversed shall not exceed what the amortised cost would have been had the impairment not been recognised.
Financial assets that the company has the positive intention and ability to hold to maturity are classified as held to maturity.
1.5 Tax
Current Tax Assets and Liabilities
Current tax for current and prior periods is, to the extent unpaid, recognised as a liability. If the amount already paid in respect of current and prior periods exceeds the amount due for those periods, the excess is recognised as an asset.
Current tax liabilities (assets) for the current and prior periods are measured at the amount expected to be paid to
Accounting Policies
31
PETRODATA MANAGEMENT SERVICES LIMITEDFINANCIAL STATEMENTS FOR THE YEAR ENDED 31, 2017
1.8 Impairment of Assets
The company assesses at each end of the reporting period whether there is any indication that an asset may be impaired. If any such indication exists, the company estimates the recoverable amount of the asset.
Irrespective of whether there is any indication of impairment, the company also: Tests intangible assets with an indefinite useful life or intangible assets not yet available for use for
impairment annually by comparing its carrying amount with its recoverable amount. This impairment test is performed during the annual period and at the same time every period.
Tests goodwill acquired in a business combination for impairment annually.
If there is any indication that an asset may be impaired, the recoverable amount is estimated for the individual asset. If it is not possible to estimate the recoverable amount of the individual asset, the recoverable amount of the cash-generating unit to which the asset belongs is determined.
The recoverable amount of an asset or a cash-generating unit is the higher of its fair value less costs to sell and its value in use.
Accounting Policies
(recovered from) the tax authorities, using the tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period.
Deferred Tax Assets and Liabilities
A deferred tax asset is recognised for the carry forward of unused tax losses and unused WHT credits to the extent that it is probable that future taxable profit will be available against which the unused tax losses and unused WHT credits can be utilised.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period.
1.6 Leases
Leases are classified as finance lease when it transfers substantially all the risks and rewards incidental to ownership. All other leases are classified as operating leases.
Rentals payable under operating leases are charged to profit or loss on a straight-line basis over the term of the lease. Benefits received and receivable as an incentive to enter into an operating lease are also spread on a straight-line basis over the lease term.
1.7 Inventories
Inventories are unutilised consumables representing the unnutilised portion of stationery purchased for the production of training materials.
Inventories are stated at the lower of cost and net realisable value on the first-in-first-out basis. Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale.
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PETRODATA MANAGEMENT SERVICES LIMITEDFINANCIAL STATEMENTS FOR THE YEAR ENDED 31, 2017
If the recoverable amount of an asset is less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. That reduction is an impairment loss.
An impairment loss of assets carried at cost less any accumulated depreciation or amortisation is recognised immediately in profit or loss. Any impairment loss of a revalued asset is treated as a revaluation decrease.
An entity assesses at each reporting date whether there is any indication that an impairment loss recognised in prior periods for assets other than goodwill may no longer exist or may have decreased. If any such indication exists, the recoverable amounts of those assets are estimated.
The increased carrying amount of an asset other than goodwill attributable to a reversal of an impairment loss does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset in prior periods.
A reversal of an impairment loss of assets carried at cost less accumulated depreciation or amortisation other than goodwill is recognised immediately in profit or loss. Any reversal of an impairment loss of a revalued asset is treated as a revaluation increase.
1.9 Share Capital and Equity
Ordinary Shares are classified as equity and are recorded as the proceeds received not of incremental external costs directly attributable to the issue.
Earnings per Share
The company presents basic and diluted earnings per share data for its ordinary shares. Basic EPS is calculated by dividing the profit or loss attributable to ordinary weighted average number of ordinary shares outstanding during the period, adjusted for own shares shareholders of the company by the held.
Diluted EPS is determined by adjusting the profit or loss attributable to ordinary shareholders and the weighted average number of shares outstanding, adjusted for own shares held, for the effects of all dilutive potential ordinary shares.
1.10 Compound Instruments
A related party is a person or entity that is related to the entity that is preparing its financial statements (referred to as the 'reporting entity') [IAS 24.9].
(a) A person or a close member of that person's family is related to a reporting entity if that person:
(I) has control or joint control over the reporting entity; (ii) has significant influence over the reporting entity; or (iii) is a member of the key management personnel of the reporting entity or of a parent of the reporting entity.
(b) An entity is related to a reporting entity if any of the following conditions applies:
(I) The entity and the reporting entity are members of the same group (which means that each parent, subsidiary and fellow subsidiary is related to the others).
(ii) One entity is an associate or joint venture of the other entity (or an associate or joint venture of a member of a group of which the other entity is a member).
Accounting Policies
33
PETRODATA MANAGEMENT SERVICES LIMITEDFINANCIAL STATEMENTS FOR THE YEAR ENDED 31, 2017
(iii) Both entities are joint ventures of the same third party.
(iv) One entity is a joint venture of a third entity and the other entity is an associate of the third entity.
(v) The entity is a post-employment defined benefit plan for the benefit of employees of either the reporting
entity or an entity related to the reporting entity. If the reporting entity is itself such a plan, the sponsoring
employers are also related to the reporting entity.
(vi) The entity is controlled or jointly controlled by a person identified in
(vii) A person identified in (a)(i) has significant influence over the entity or is a member of the key
management personnel of the entity (or of a parent of the entity). (viii) The entity, or any member of a group of which it is a part, provides key management personnel services
to the reporting entity or to the parent of the reporting entity.
1.11 Employee Benefits
Short-term employee benefits
The cost of short-term employee benefits, (those payable within 12 months after the service is rendered, such as paid vacation leave and sick leave, bonuses, and non-monetary benefits such as medical care), are recognised in the period in which the service is rendered and are not discounted.
The expected cost of compensated absences is recognised as an expense as the employees render services that increase their entitlement or, in the case of non-accumulating absences, when the absence occurs.
The expected cost of bonus payments is recognised as an expense when there is a legal or constructive obligation to make such payments as a result of past performance.
Provisions for leave pay and bonuses are recognised as a liability in the financial statements.
Pension Fund Obligations
The Company operates a defined contribution scheme as stipulated in the new amended Pension Reforms Act 2004. Under the scheme, the Company and Employees pay fixed contributions of 10 and 8 percent respectively into a separate entity (Pension Fund Administrator) chosen by the employee. Once paid, the company has no legal or constructive obligations to pay further contributions if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
1.12 Provisions
Provisions are recognised when the entity has a present (legal or constructive) obligation as a result of a past event, and it is probable that the company will be required to settle that obligation, and a the best estimate of the consideration required to settle the present obligation at reporting date, taking into account the risks and uncertainties surrounding the obligation. If the time value of money is material, provisions are discounted using current pre- tax rate specific to the liability. The increase in provision resulting from the passage of time is recognised as a finance cost.
1.13 Taxation
The tax expense represents the sum of the current tax payable and deferred tax.
The current tax payable is based on taxable profit for the year. Taxable profit differs from net profit as reported
Accounting Policies
34
PETRODATA MANAGEMENT SERVICES LIMITEDFINANCIAL STATEMENTS FOR THE YEAR ENDED 31, 2017
in the statement of comprehensive income because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible? The company's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.
Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the financial statements and the computation of taxable profit, and is accounted for using the balance sheet liability method corresponding tax bases used in Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised.
The carrying amount of deferred tax assets is reviewed at the end of the reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.
Deferred tax assets and liabilities are calculated at the tax rates that are expected to apply to the period when the asset is realised or the liability is settled, based on tax rates and tax laws that have been enacted or substantively enacted by the end of the reporting period. The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.
Deferred tax is charged or credited to profit or loss for the period, except to the extent that the tax arises from a transaction or event which is recognised, in the same or a different period, outside profit or loss, either in other comprehensive income or directly in equity. Deferred tax is charged or profit or loss, either in other comprehensive income or directly in equity. Deferred tax is charged or different period, outside profit or loss.
1.14 Revenue
Revenue is recognised when it is probable that the economic benefit will flow to the company and the revenue can be reliably measured. Revenue is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods and services provided in the normal course of business net of VAT and other related sales taxes.
Cost of Sales
Revenue is recognised generally on completion or on a straight line basis over the period of services provided unless a better method reflects the stage completion.
Stage completion is measured by reference to labour hours incurred to date as a percentage of total estimated hours for each contract. Where the contract outcome cannot be reliably estimated, revenue is only recognised to the extent of the recoverable costs incurred to date.
1.15 Other Income
Investment income Investment income comprises realised and unrealised gains on investments, interest income and dividend income.
Interest income Interest income is accrued on a time basis, by reference to the principal outstanding and the effective interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to that asset's net carrying amount.
Accounting Policies
35
PETRODATA MANAGEMENT SERVICES LIMITEDFINANCIAL STATEMENTS FOR THE YEAR ENDED 31, 2017
Dividend income Dividend Income is recognised when the right to receive payment is established.
1.16 Borrowing Costs
Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are capitalised as part of the cost of that asset until such time as the asset is ready for its intended use. The amount of borrowing costs eligible for capitalisation is determined as follows:
Actual borrowing costs on funds specifically borrowed for the purpose of obtaining a qualifying asset less any temporary investment of those borrowings.
Weighted average of the borrowing costs applicable to the entity on funds generally borrowed for the purpose of obtaining a qualifying asset. The borrowing costs capitalised do not exceed the total borrowing costs incurred.
The capitalisation of borrowing costs commences when: Expenditures for the asset have occurred; Borrowing costs have been incurred, and Activities that are necessary to prepare the asset for its intended use or sale are in progress.
Capitalisation is suspended during extended periods in which active development is interrupted.
Capitalisation ceases when substantially all the activities necessary to prepare the qualifying asset for its intended use or sale are complete.
All other borrowing costs are recognised as an expense in the period in which they are incurred.
1.17 Translation of Foreign Currencies
Foreign currency transactions
Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. The functional currency is the currency of the primary economic environment in which the entity operates, which is the Nigerian Naira.
Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end closing exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss.
At the end of each reporting period, monetary items denominated in foreign currencies are retranslated at the rates prevailing at that date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rates prevailing at the date when the fair value was determined. Non-monetary items that are measured in terms of historical cost in a foreign currency are not retranslated.
1.18 Interest Bearing Liabilities
All debentures, loans and borrowings are initially recognised at fair value, being the amount received less attributable transaction costs. After initial recognition, interest bearing liabilities are stated at amortised cost with any difference between cost and redemption value being recognised in the income statement over the period of the borrowings on an effective interest basis.
Accounting Policies
36
PETRODATA MANAGEMENT SERVICES LIMITEDFINANCIAL STATEMENTS FOR THE YEAR ENDED 31, 2017
1.19 Finance Cost
Finance costs are recognised as expenses in the period in which they are incurred.
Finance costs include interest on debentures, bank overdrafts and short-term borrowings, amortisation of discounts or premiums relating to borrowings, amortisation of ancillary costs incurred in connection with the arrangement of borrowings, finance lease charges and certain exchange differences arising from foreign currency borrowings.
Accounting Policies
37
PETRODATA MANAGEMENT SERVICES LIMITEDFINANCIAL STATEMENTS FOR THE YEAR ENDED 31, 2017
Notes to theFinancial Statements
38
2017 2016
Cost or Accumulated Carrying Cost or Accumulated Carrying revaluation depreciation value revaluation depreciation value
Land 20,050,500 - 20,050,500 39,129,612 - 39,129,612 Building-in-progess 52,212,602 - 52,212,602 - - - Plant and machinery 58,347,616 (37,465,849) 20,881,767 58,347,616 (31,742,916) 26,604,700 Furniture and fixtures 13,510,120 (12,917,489) 592,631 13,510,120 (12,378,024) 1,132,096 Motor vehicles 22,771,250 (19,311,360) 3,459,890 22,771,250 (17,015,214) 5,756,036 Office equipment 124,234,274 (114,432,618) 9,801,656 118,273,374 (109,335,150) 8,938,224 Tape Storage Equipment 44,549,212 (32,416,862) 12,132,350 44,549,212 (30,221,013) 14,328,199 Tape Transcription 113,219,820 (97,183,155) 16,036,665 104,890,200 (90,447,561) 14,442,639 Equipment
Total 448,895,394 (313,727,333) 135,168,061 401,471,384 (291,139,879) 110,331,505
2. Property, Plant and Equipment
Reconciliation of Property, Plant and Equipment - 2017
Opening Additions Depreciation Total balance Land 29,679,612 9,450,000 - 39,129,612 Plant and machinery 25,740,458 6,273,500 (5,409,258) 26,604,700 Furniture and fixtures 992,497 693,000 (553,401) 1,132,096 Motor vehicles 2,600,645 5,801,250 (2,645,859) 5,756,036 Office equipment 10,989,794 3,650,842 (5,702,412) 8,938,224 Tape Storage Equipment 16,524,047 - (2,195,848) 14,328,199 Tape Transcription Equipment 11,925,699 8,051,526 (5,534,586) 14,442,639
98,452,752 33,920,118 (22,041,364) 110,331,505
** Amounts expended on Buildings (In-Progress) was ascertained and separated from the Cost of Land in 2017
Opening Additions **Other Depreciation Total balance changes,
movements Land 39,129,612 - (19,079,112) - 20,050,500 Building-in-progress - 33,133,490 19,079,112 - 52,212,602 Plant and machinery 26,604,700 - - (5,722,933) 20,881,767 Furniture and fixtures 1,132,096 - - (539,465) 592,631 Motor vehicles 5,756,036 - - (2,296,146) 3,459,890 Office equipment 8,938,224 5,960,901 - (5,097,469) 9,801,656 Tape Storage Equipment 14,328,199 - - (2,195,849) 12,132,350 Tape Transcription Equipments 14,442,639 8,329,620 (6,735,594) 16,036,665
110,331,506 47,424,011 (22,587,456) 135,168,061
Reconciliation of Property, Plant and Equipment - 2016
PETRODATA MANAGEMENT SERVICES LIMITEDFINANCIAL STATEMENTS FOR THE YEAR ENDED 31, 2017
3. Intangible Assets
Computer Software is the Company's Sage evolution premium ERP software.
Other Intangible assets represent the cost of obtaining the Information Security Management System (ISO 27001:2013) certification. This will be amortized over 3 years at 33.33%
Notes to theFinancial Statements
39
Opening
Amortisation
Total
balance
Computer software 1,371,633 (342,903) 1,028,730
Other intangible assets 7,383,738 (2,684,727) 4,699,011
Reconciliation of Intangible Assets -2016
Opening Additions Amortisation Total
balance
Computer software 20 1,714,516 (342,903) 1,371,633 Other intangible assets - 8,054,986 (671,248) 7,383,738
20 9,769,502 (1,014,151) 8,755,371
8,755,371 (3,027,630) 5,727,741
4. Inventories
Inventories 7,153,975 16,705,408
5. Trade and Other Receivables
Trade receivables 196,118,442 182,382,563 Employee costs in advance 825,044 475,284 Related Party Receivables (Note 22) 3,405,836 930,288 Other Debtor 2,185,800 919,104 WHT Credit notes receivable 92,893,325 82,342,450
295,428,447 267,049,689
2017 2016
N. N.
2017 2016
Cost / Accumulated Carrying Cost / Accumulated Carrying Valuation amortisation value Valuation amortisation value
Computer software 2,864,516 (1,835,786) 1,028,730 2,864,516 (1,492,883) 1,371,633 Other intangible assets 8,054,986 (3,355,975) 4,699,011 8,054,986 (671,248) 7,383,738
Total 10,919,502 (5,191,761) 5,727,741 10,919,502 (2,164,131) 8,755,371
Reconciliation of Intangible Assets 2017 -
PETRODATA MANAGEMENT SERVICES LIMITEDFINANCIAL STATEMENTS FOR THE YEAR ENDED 31, 2017
Notes to theFinancial Statements
40
2017 2016 N. N.
6. Prepayments
Medicals 864,633 328,833 Insurance 1,980,232 3,708,593 Rent 12,386,682 24,773,364 Diesel 1,864,811 1,245,103
Software 1,904,514 1,649,026
19,000,873 31,704,919
7. Cash and Cash Equivalents
Cash and cash equivalents consist of:
Cash on hand 39,830 21,280 Bank balances 233,246,436 156,108,218
233,286,266 156,129,498
8. Share Capital
Authorised 25,000,000 Ordinary shares of N10 each 250,000,000 250,000,000
Issued 18,223,070 Ordinary Shares of N10 each 182,230,700 182,230,700 Share premium 13,099,780 13,099,780
195,330,480 195,330,480
9. Deferred Tax
Deferred tax liability (37,463,862) (48,902,339)
Reconciliation of deferred tax asset / (liability)
At beginning of year (48,902,339) (20,255,672) Taxable / (deductible) temporary difference movement on tangible fixed assets
11,438,477 (28,646,667)
(37,463,862)
(48,902,339)
10. Trade and Other Payables
Trade payables 2,232,971 8,376,235 Amounts due to related parties 7,401,977 7,401,977 Other payables 19,169,574 17,213,067 Accrued expense 36,845,713 18,462,037 Accrued audit fees 2,100,000 900,000
67,750,235 52,353,316
PETRODATA MANAGEMENT SERVICES LIMITEDFINANCIAL STATEMENTS FOR THE YEAR ENDED 31, 2017
11. Current Tax Payable
The charge for income tax in this financial statement is based on the provision of the Companies Income Tax Act CAP C21LFN as amended to date.
The charge for Education tax is based on the provision of the Education Tax Act CAP E4 LFN 2004.
13. Cost of Sales
Notes to theFinancial Statements
41
2017 2016 N. N.
Balance brought forward 45,554,758 38,257,108
Company tax for the period 46,422,948 35,096,464
Less: payment made during the year (19,497,002) (27,798,814)
Withholding credit notes utilised(15,599,462)
56,881,242 45,554,758
-
12. Revenue
Registration
Tape Storage
Tape Retrieval/Relocation
Well Log Digitalization Service
Computer Floor Space Transcription and Integrity monitor
Associated Document Storage
Electronic Data Management System
Digital online Storage & DR Services
Sales of Hardware and Software
Shipping and Carriage
Handling Charges Software Services
8,978,858
15,949,878
144,820,238
121,373,724 7,144,880
3,626,902
23,437,313 9,544,373 -
51,153,848 199,481,763 181,056,020 30,694,950
23,808,841
36,953,578
29,783,188 59,135,133
33,654,658
3,741,786
216,653
4,124,267 2,372,454 214,390
53,211
2,084,966
490,500
520,812,122 473,084,250
Bailee Insurance - Third party Computer/Database SupportCost of Sale - Digital Online Storage Cost of Sale - Electronic Data Management System Cost of Sale OperationsDepreciation Plant and Machinery Depreciation -Tape Storage Equipment Depreciation -Tape Transcription Equipment Direct Expenses - Software Services DPR and Storage LicenseDirect Employee CostGenerator Repairs and MaintenanceGenerator DieselPurchaseOperational Software LicenseRepair and Maintenance - Equipment in Storage Tape Storage/Transcription Equipment Repair
2,435,247 2,435,24850,400 38,000
26,939,385 8,848,56113,715,014 22,470,95417,108,723 17,617,7465,722,933 5,409,2582,195,849 2,195,8496,735,594 5,534,586
216,742 232,500383,000 337,600
63,668,483 102,758,569 3,046,997
3,512,25513,259,719 12,789,624
4,438,325 3,293,2905,034,706 2,106,960
530,308
493,857
715,000 660,000
166,196,425 190,734,857
PETRODATA MANAGEMENT SERVICES LIMITEDFINANCIAL STATEMENTS FOR THE YEAR ENDED 31, 2017
14. Other Income Profit and loss on sale of assets and liabilities Profit and loss on exchange differences Interest income
1,200,000
21,201,363
6,064,38617,241,183 65,295,7983,960,180
72,560,184
-
15. Operating Expense
16. Taxation Major components of the tax expense
Current
Company Income Tax 43,028,811 31,423,578 Education Tax 3,394,136 3,672,886
46,422,947 35,096,464
Notes to theFinancial Statements
42
The following items are included within operating expenses:
Advertising
1,733,340
481,991
Auditors remuneration
2,000,000
2,000,000
Bank charges
1,458,289
2,696,404
Sanitation and Cleaning
712,071
995,999
Professional Fees
10,856,064
1,889,945
Consumables
1,777,646
1,998,896
Communication expenses
9,203,624
7,596,082
Depreciation
10,960,710
9,915,823
Entertainment
5,379,992
12,255,845
Donations
2,538,808
750,000
Employee costs
45,125,009
48,960,478
Staff Training and Development
9,957,542
5,239,375
Directors Remuneration
7,562,500
7,562,500
Land Permits and Rates
7,800
186,306
Local Content Fees
3,238,579
3,250,161
Rent
12,386,682
9,830,700
Security Expenses
887,823
663,015
Fines and penalties 98,234 - Industrial Training Fund
1,320,749
1,746,914
Magazines, books and periodicals
190,080
159,360
Motor Vehicle Running Expenses
5,608,355
5,466,086
Repair and Maintenance
2,896,359
3,956,974
Medical Expenses 2,602,492 5,220,492AGM and Board meeting expenses 3,450,000 6,780,875 Postage
1,385,960
633,606
Printing and stationery
3,268,957
888,280
Insurance
3,670,307
3,511,276
Tax Consultancy 8,512,500 1,260,000 Staff Gratuity and Bonus
34,248,669
27,347,970
Subscriptions
326,719
601,241
Telephone Expenses
1,393,000
1,604,500
Electricity
6,291,519
5,533,256
Transport and freight
11,532,027
8,936,455
Secretarial Charges
2,000,000 2,000,000
214,582,404
191,920,805
2017 2016 N. N.
PETRODATA MANAGEMENT SERVICES LIMITEDFINANCIAL STATEMENTS FOR THE YEAR ENDED 31, 2017
18. Cash Generated from Operations
19. Tax Paid
Balance at beginning of the year
(45,554,758) (38,257,109)Current tax for the year recognised in profit or loss
(46,422,947) (35,096,464)Balance at end of the year 56,881,242 45,554,758
(35,096,463) (27,798,815)
20. Dividends Paid
Risk Management 21.
The company's objectives in managing capital are to safeguard the company's ability to continue as a going concern so that it can continue to provide returns for the shareholder and benefits for other stakeholders; and provide an adequate return to the shareholder commensurately with the level of risk. There are no externally imposed capital requirements.
There have been no changes to what the entity manages as capital, the strategy for capital maintenance or externally imposed capital requirements from the previous year.
Capital Risk Management
Notes to theFinancial Statements
43
Deferred Deferred tax (11,438,478) 28,646,667
34,984,469 63,743,131
17. Auditors' Remuneration
Fees 2,000,000
2,000,000
Profit before taxation 161,234,656 162,988,773
Adjustments for:
Depreciation and amortisation 25,615,085 23,055,516Loss on sale of assets - (1,200,000)
Changes in working capital:
Inventories 9,551,433 (7,574,514)
Trade and other receivables (28,378,757) (4,120,783)Prepayments 12,704,046 (18,017,854)Trade and other payables 15,396,919 16,986,472
196,123,382 172,117,610
Dividends (36,446,140) (27,287,730)
2017 2016 N. N.
PETRODATA MANAGEMENT SERVICES LIMITEDFINANCIAL STATEMENTS FOR THE YEAR ENDED 31, 2017
Financial Risk Management
The company's activities expose it to a variety of financial risks: market risk (including currency risk, fair value interest rate risk, cash flow interest rate risk and price risk), credit risk and liquidity risk.
The company's overall risk management program focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the company's financial performance. The company uses derivative financial instruments to hedge certain risk exposures. Risk management is carried out by a central treasury department (company treasury) under policies approved by the board. Company treasury identifies, evaluates and hedges financial risks in close co-operation with the company's operating units. The board provides written principles for overall risk management, as well as written policies covering specific areas, such as foreign exchange risk, interest rate risk, credit risk, use of derivative financial instruments and non-derivative financial instruments, and investment of excess liquidity.
Liquidity Risk
The company's risk to liquidity is a result of the funds available to cover future commitments. The company manages liquidity risk through an ongoing review of future commitments and credit facilities.
Credit Risk
Credit risk consists mainly of cash deposits, cash equivalents, derivative financial instruments and trade debtors. The company only deposits cash with major banks with high quality credit standing and limits exposure to any one counter-party.
Trade receivables comprise a widespread customer base. Management evaluated credit risk relating to customers on an ongoing basis. If customers are independently rated, these ratings are used. Otherwise, if there is no independent rating, risk control assesses the credit quality of the customer, taking into account its financial position, past experience and other factors. Individual risk limits are set based on internal or external ratings in accordance with limits set by the board. The utilisation of credit limits is regularly monitored. Sales to retail customers are settled in cash or using major credit cards. Credit guarantee insurance is purchased when deemed appropriate.
2017 2016
Notes to theFinancial Statements
44
N. N.
22. Related Parties
Relationships Maple Leaf Technologies
TGS - Petrodata Offshore Service Limited PetroData Estates Limited
Related party balances
Amount due from related parties TGS - Petrodata Offshore Service Limited 2,500,000 895,799 Maple Leaf Technologies 905,836 34,489
Amounts due to related parties Maple Leaf Technologies 7,401,977 7,401,977
PETRODATA MANAGEMENT SERVICES LIMITEDFINANCIAL STATEMENTS FOR THE YEAR ENDED 31, 2017
Value added represents the additional wealth which the company has been able to create by its own and employees efforts.
The Value Added Statement does not form part of the IFRS Financial Statement
Value Added Statements
45
2017
2017
N.
%
2016
2016
%
Value Added
Value added by operating activities
Revenue 520,812,122 473,084,251 Bought- in materials and services (261,024,629) (222,220,792) Other income 21,201,363 72,560,184
280,988,856 100 323,423,643 100
Value added by investing activities
Profit/ Gain/ Loss/ Fair Value adjustments/PPE - 1,200,000
Total Value Added 280,988,856 100 324,623,643 100
Value Distributed
To Pay Employees
Employee Cost 108,793,490 151,719,047
108,793,490 39 151,719,047 47
To Pay Government
Income Tax 46,422,947
46,422,947 17 35,096,464 11
To be retained in the business for expansion and future
wealth creation:
Value reinvestedDepreciation, amortisation and impairments
10,960,710
Deferred tax (11,438,478) (477,768)
9,915,82328,646,667
38,562,490 12
Retained profit 126,250,187 99,245,642
126,250,187 45 99,245,642 31
Total Value Distributed 280,988,856 100 324,623,643 100
Value retained
N
35,096,464
PETRODATA MANAGEMENT SERVICES LIMITEDFINANCIAL STATEMENTS FOR THE YEAR ENDED 31, 2017
Five Year Financial Summary
46
140,895,802 119,086,876 100,167,288
695,765,363 590,676,390 465,787,690
37,463,862 48,902,339 20,255,672124,631,477 97,908,074 73,623,953
162,095,339 146,810,413 93,879,625
122,600,304
407,393,080 449,077,883
9,577,666 14,523,88269,310,340 97,346,880
78,888,006 111,870,762
182,230,700
182,230,700
182,230,700
182,230,700
182,080,700
13,099,780 13,099,780 13,099,780 13,099,780 12,949,780338,339,544 248,535,497 176,577,585 133,174,594 142,176,641
533,670,024 443,865,977 371,908,065 328,505,074 337,207,121
695,765,363 590,676,390 465,787,690 407,393,080 449,077,883
520,812,122
473,084,251
549,563,431
471,799,865
509,745,530
(166,196,425) (279,024,444)
354,615,697 284,505,024 239,785,119 192,775,421 242,358,656 21,201,363
72,560,184
13,818,592
6,197,885
1,419,044
(168,990,439)
(28,152,943)
54,707,007
54,707,007
54,707,007
(160,917,750)(179,192,377)
2017 N.
2016 N.
2015 N.
2014 N.
2013 N.
Statement of Financial Position
Assets Non-current assets
154,496,73
Current assets
Total assets
Liabilities Deferred
Tax
Current liabilities
Total liabilities
Equity Share
capital
Share Premium Retained income
Total equity
Total equity and liabilities
Financed by:
Share
capital
Share Premium
Retained Earnings
Total equity Total equity and liabilities
Profit and loss account
Revenue
Cost of sales Gross profit Other
income
Operating expenses
Operating profit
Profit before taxation
Taxation
Profit after taxation
Profit for the year Retained income for the year
554,869,561
471,589,514
365,620,402
284,792,776
294,581,110
182,230,700
182,230,700
182,230,700
182,230,700
182,080,700
13,099,780 13,099,780 13,099,780 13,099,780 12,949,780
338,339,544 248,535,497 176,577,585 133,174,594 142,176,641
533,670,024 443,865,977 371,908,065 328,505,074 337,207,121
695,765,363 590,676,390 465,787,690 407,393,080 449,077,883
(309,778,312)(188,579,227) (267,386,874)
(194,076,435) (214,582,406) (84,613,272) (82,859,950)(19,780,929)(162,988,773) (161,234,654)
(84,613,272) (82,859,950)(19,780,929)(162,988,773) (161,234,654) (34,984,469) (63,743,131) (38,476,820) (6,933,290)
126,250,185 99,245,642 46,136,452 12,847,639
126,250,185 99,245,642 46,136,452 12,847,639
126,250,185 99,245,642 46,136,452 12,847,639
The Five year Financial Summary does not form part of the IFRS Financial Statement
PETRODATA MANAGEMENT SERVICES LIMITEDFINANCIAL STATEMENTS FOR THE YEAR ENDED 31, 2017
Five Year Financial Summary
47
2017 2016 2015 2014 2013
N. N. N. N. N.
Per share data
Earnings per share (Basic) 7 5 3 1 3 Earnings per share (Diluted) 6 5 2 1 3
Net assets per share 27 23 19 17 17
40 33 24 20 24
Cash flow
Cash flow from operating activities 161,026,919 144,318,795 77,680,886 (40,397,177) 96,303,129 Cash flow from investing activities (47,424,011) (40,775,103) (12,733,644) (8,492,074) (18,351,852)
Cash flow from financing activities (36,446,140) (27,287,730) (2,733,461) (21,549,684) (19,749,593)
Cash movement for the year 77,156,768 76,255,962 62,213,781 (70,438,935) 58,201,684
PETRODATA MANAGEMENT SERVICES LIMITEDFINANCIAL STATEMENTS FOR THE YEAR ENDED 31, 2017
Five Year Financial Summary
48
PETRODATA MANAGEMENT SERVICES LIMITEDFINANCIAL STATEMENTS FOR THE YEAR ENDED 31, 2017
Members are hereby informed that some annual reports have been returned to the registrar because the
addresses could not be traced.
If you have not received any of your past dividends, kindly contact:
The Registrar
FATIMA ABDULAZEEZ & CO. (GOLDHOUSE SOLICITORS)
144, OGUNLANA DRIVE, SURULERE, LAGOS or by email to [email protected]
Unclaimed Dividendas at 31st December 2017
49
Year Ended Dividend Type Unclaimed Dividend Dividend per Share (N)
12/31/2010 Final 67,500.00 25
12/31/2011 Final 67,500.00 15
12/31/2012 Final 349,191.00 15
12/31/2013 Final 267,713.00 1.15
12/31/2014 Final 310,392.00 1.20
12/31/2015 Final 38,799.00 0.15
12/31/2016 Final 387,990.00 1.50
12/31/2017
Final
517,320.00
2.00
TOTAL 2,006,405.00
PETRODATA MANAGEMENT SERVICES LIMITEDFINANCIAL STATEMENTS FOR THE YEAR ENDED 31, 2017
PETRODATA MANAGEMENT SERVICES LIMITED 1, Motorways Avenue, Alausa, Ikeja, Lagos
2017 ANNUAL GENERAL MEETING PROXY FORM I/We, _______________________________ of ____________________________________ being a Member/Members of PETRODATA MANAGEMENT SERVICES LIMITED hereby appoint_____________________________________________________________ of________________________________________________________________________ and failing him/her__________________________________________________________ of_______________________________________________________________________ as my/our proxy to attend and vote on my/our behalf at the 22nd Annual General Meeting of the
Company, holding at 12 noon on Thursday, 31st May, 2018, at The Westwood Hotel, 22 Awolowo
Ikoyi, Lagos and at any adjournment thereof.
Dated this ………… day of …………2018
----------------------------------- ----------------------------------- SIGNATURE SIGNATURE
NUMBER OF SHARES: ORDINARY OTHERS
ORDINARY BUSINESS
RESOLUTIONS
To receive the Audited Financial Statements for the year ended 31st December, 2017 and the report of the Directors and Auditors thereon.
FOR AGAINST To declare a dividend.
To authorize the Directors to �ix the remuneration of the Auditors.
Proxy Form
50
PETRODATA MANAGEMENT SERVICES LIMITEDFINANCIAL STATEMENTS FOR THE YEAR ENDED 31, 2017
PETRODATA MANAGEMENT SERVICES LIMITED 1, Motorways Avenue, Alausa, Ikeja, Lagos.
It is our pleasure to inform you that you can henceforth, collect your dividend through DIRECT CREDIT into your Bank Account. Consequently, we hereby request you to provide the following informa�on to enable us process direct payment of your dividend (when declared) into your bank account. (1) ORDINARY SHARES Date (DD/MM/YYY)
Shareholder Account number (if known)
(2) Surname/Company's Name
(2.1) Other Name (for Individual Shareholder)
(2.2) Present Postal Address
City State
(2.3) E-mail Address
(2.4) Mobile (GSM) Phone Number
(3) Bank Name
(3.1) Branch Address
(3.2) Bank Account Number
3.3) Bank Sort Code
Please forward un�l further no�ce all future interest or dividends to which I/We become en�tled for the item detailed in 1 above to the branch of the bank detailed in item 3.1.
(4)
Shareholder's Signature or Thumbprint
Shareholder's Signature or Thumbprint
Company Seal/Incorpora�on Number (Corporate Shareholder)
This form must be signed by ALL the registered holders, When completed on behalf of corporate
Executor (s) or administrators
body, each signatory should state the
Representa�ve capacity, e. g
Company Secretary, Director etc.
AUTHORISED SIGNATURE AND STAMP OF BANKERS
(5) The branch stamp and signature of an authorized signatory of your bank is required to confirm that the signature(s) in box 4 is that of the shareholder (s) or an authorized signatory, before returning to the Registrars.
Mandate For e-DividendPayment
52
PETRODATA MANAGEMENT SERVICES LIMITEDFINANCIAL STATEMENTS FOR THE YEAR ENDED 31, 2017